As a potential trade war looms between the U.S. and Canada, Elon Musk’s Starlink may lose a $100 million contract with Ontario.
U.S. President Donald Trump has promised steep tariffs on Candada, Mexico, and China. Ironically, Trump has promised the steepest tariffs—of 25%—on Canada and Mexico, two of the U.S.’ closest allies. In contrast, China is slated to be hit with a 10% tariff, despite the longstanding issues between the two countries.
Given Elon Musk’s position at the center of U.S. fiscal policy under Trump’s second term, it’s little wonder that his Starlink is a target for retaliation. Ontario Premier Doug Ford initially said his province would cancel its contract with Starlink in response to the tariffs, but has since agreed to a 30-day reprieve that mirrors the 30-day reprieve Trump and Canadian Prime Minister Justin Trudeau agreed to for the tariffs.
Premier Ford announced his plans in an X post.
We have some good news today. We have temporarily averted tariffs that would have severely damaged our economy, giving time for more negotiation and time for cooler heads to prevail. Thank you to the countless workers, union leaders, businesses and everyday proud Canadians who rallied together to make this happen.
With the U.S. pausing tariffs, Ontario will also pause our retaliatory measures. If President Trump proceeds with tariffs, we won’t hesitate to remove American products off LCBO shelves or ban American companies from provincial procurement.
Make no mistake, Canada and Ontario continue to stare down the threat of tariffs. Whether it’s tomorrow, in a month or a year from now when we’re renegotiating the United States-Mexico-Canada Agreement, President Trump will continue to use the threat of tariffs to get what he wants. We’re already feeling the impact. So long as our trading relationship with our largest trading partner is up in the air, we will continue to see many potential projects frozen and projects that were already under way put at risk.
Canada and the U.S. need to remain united and focused on the real trade war we’re fighting, with China. If we want to win, we need to fight together – not each other.
While Trump and his supporters are quick to tout tariffs as some kind of magic bullet that will fix the U.S. economy and solve all sorts of problems, the reality is far more complicated and will result in very real damage being done to businesses on both sides of such tariffs.
from WebProNews https://ift.tt/cySklrp
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